Which of the following statement is true if the Net Present Value (NPV) of a positive?
A
The IRR must be greater than 0.
B
The discount rate exceeds the cost of capital.
C
The profitability index equals 1
D
Accepting the project has an indeterminate effect on shareholders
Correct Answer: The IRR must be greater than 0.
The IRR must be greater than 0 is true if the Net Present Value (NPV) of a positive.